The league sub-committee has decided that the Bairns failed to comply with SPFL Rules D9 and D10 when McKinnon made the switch from Cappielow to The Falkirk Stadium on August 31.
Falkirk have not received the full explanation over the decision made following a Hampden summit at the end of last month.
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D10 No Club shall either directly or indirectly induce or attempt to induce any manager, coach, trainer or other person involved in the training or management of the team of another Club or a club in membership of the Scottish FA to breach a written contract of employment. Clubs may notify the Company in writing, of the period of all or any such persons’ contracts of employment.
LEAGUE TABLE: SPFL Championship
McKinnon moved along with assistant Darren Taylor and fitness coach Graeme Henderson.
A statement from the Bairns says the club is “surprised and disappointed” by the judgement.
It adds: “Our position remains unchanged and we believe all proper process was followed in the appointment of both Ray and Darren.
“As a club, we have already expressed our grave concerns over the way this matter has been dealt with by the SPFL and consider that this decision has serious consequences for the future movement of players and managers in Scottish football.
“Once we have received a fuller explanation from the SPFL, we will meet with our legal representatives and decide on our next course of action.
APPOINTMENT: How we delivered the news on August 31 McKinnon’s move caused upset at Cappielow and emoptional statements from chairman Crawford Rae and a red card protest by supporters at the last meeting of the sides in Greenock.
The local newspaper also branded McKinnon ‘Judas’ – which he brushed off at his first press conference at the Falkirk helm.
A further hearing will now be arranged for the SPFL sub-committee to consider what sanction, if any, should be applied to the Bairns.
MONDAY VERDICT: Falkirk 0 Morton 0